A Comment -- General Comments From an Expert (A Commentary)

COMMENT
5 year GIC Versus 5 year Canada Bond? GIC should yield more. If you are a Buy and Hold investor and investing less than $100,000, GIC is a slam-dunk. More active investors should look at the Canada’s that are more easily traded.
COMMENT
Yield Curve. Looking at this today, 5-year area is a little bit expensive and 2-year and 10-year probably offer more value. That is the government curve. In corporates you get more value and the curve gets very steep in the 5 to 10 year area, which is what he would recommend.
COMMENT
5-year laddered or 5-year laddered government/provincial bond ETF? A little more yield on GICs but you give that up on liquidity. He would recommend you use both and build your own ladder.
N/A
[Today’s show also includes technical analysis.] This is a very significant bull market. All the things that push a bull market forward are in place. The current debt problems are a sovereign problem. The private sector has corrected its problems, but the public sector has not. He would not own government bonds right now. That’s where the bubble is.
SELL

Gold: On 1 year there is a head and shoulders emerging. Gold could use a bit of a break. Suggests sell and wait for it to go back down.

COMMENT
He does not look at market capitalization. He just wants to see momentum.
COMMENT

Stop Losses: He doesn’t use stop orders. You can get stopped out on a sudden, quick, short drop. He wants to see if the stock breaks various moving averages and trend lines.

COMMENT

Canadian Banks: The earnings do not look good to him. Earnings growth is flat. Will most likely to continue to be very anemic.

COMMENT

Canadian Trusts: He owns a lot in his fund because even when they become taxable, they still offer some of the highest yields in the world. Will go higher as long as FED keeps interest rates low.

COMMENT
Stocks have been lagging the commodities. Juniors are lagging large caps. If the larger stocks deliver the earnings, they will go up. They might well under perform the commodities because they did last time.
COMMENT
Gold. Looking for $2,000 or better in the next 2 years and feels that is very conservative.
COMMENT
ETF of small cap gold stocks or US bank like CitiGroup (C-N)? Banks will take time to work out and gold is on a roll right now so an ETF in the shorter term will do better. CitiGroup made lots of money in their investment banking and other businesses but have actually downsized so quality of earnings will probably be better.
COMMENT
Gold. More optimistic on base metals so has shifted some of funds out of gold.
COMMENT
Market has been rising since August but people have now come into a profit-taking mood. Cyclic research suggests that corrections will probably be over by mid-December and then we could go again. We are in a Bull market until possibly Sept 2011 or later.
COMMENT
Gold. Original Point Figure target originally 2, 1,500 and 2000. Then you start looking at how the tempo goes. If it goes slowly and doesn’t reach the point where everybody wants to be there, then you’ll probably go to 2000. At this stage it has been going very steeply and there is a strong possibility that it’ll go to 1500 and not much higher.
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